Conducting a Successful Broadband Feasibility Study Mark Mrla & Chris Konechne – Finley Engineering Company Blandin Foundation – 2019 Broadband Conference Grand View Lodge – Nisswa, MN October 9, 2019 FinleyUSA.com
Finley Engineering Experience • Completed over 20 studies in the last 3 years • 13 of those were MN counties and cities • Nearly all of the MN studies ended with built out networks • Those that haven’t, are too recent and are working that direction FinleyUSA.com
What Do You Want From a Feasibility Study? Typically……. • • Market/needs assessment Mapping of network options • • Audit existing network / mapping Financial business cases • • Community engagement guidance Provider options • • Network designs/technologies Partnership options • • Costs Funding options FinleyUSA.com
RFP Cautions Assessment Inventory GIS Maps • Do research before engaging a consultant and sending out an RFP. Some consultants are Request for Proposal (RFP) putting out bad RFP’s Provider Design Assets • How much are you asking to be done? Many RFP’s are requiring steps that are not yet needed. Budget • Are you required to take low price? • Can you compare apples to apples when you get your RFP responses? FinleyUSA.com
Key Players Who Should be Involved? • Experienced professionals (engineering, financial, legal, etc.) at certain times • Study owner’s team • Potential providers • The community • Possibly potential investment partners FinleyUSA.com
Options, Options, Options • • Design Options Partnership Options • • Technology Options Business Structure Options • • Financing/Funding Options Timing Options There are hundreds of options that could be studied… You can’t study them all The key to finding the best solution is • Gathering the right data • Evaluating the right options FinleyUSA.com
Funding Funding Option Examples • Cash or general funds • Bonding – revenue, G.O., etc • Bank or other loans • Investors • Federal or state grants and loans • 3 rd party grants (such as foundations) FinleyUSA.com
Feasibility Studies in Minnesota are Now More Important than Ever • MN has one of the best broadband grant programs in the country • MN has successfully offered broadband grants since 2014 • MN has provided consulting to over 25 other states on language for their proposed broadband bills/legislation & grant applications • MN has approved 2 years of grant money for applications in 2019 & Population – 5.6 Million 2020 FinleyUSA.com
Minnesota Broadband Grant Program Stats Year Apps Apps Total App Amounts Total Amount Total Locations Submitted Awarded Requested Available to Award Served by Apps 2014 40 16 $ 44.2M $ 20M 6,333 2015 44 15 $ 29.0M $ 10.588M 4,089 2016 57 40 $ 54.2M $ 35M 16,708 2017 70 39 $ 50.3M $ 20M 12,202 2018 $15M approved by legislature, but governor vetoed budget bill due to other contents 2019 80 $ 68.1M $20M 2020 $ 20M FinleyUSA.com
Timing • Our typical studies fall into a 2 to 4 month timeframe, but could be shorter or longer depending upon: • Size • Complexity • Details and services required • Number of players involved • Availability of GIS/maps and other information FinleyUSA.com
Community Involvement There is usually a need to get at least some of the community actively involved in the process for: • Awareness, education, needs assessment • 2 or more champions to drive it forward • Surveys • Speed test verifications • Service commitment signups to verify adequate take‐rates FinleyUSA.com
Study First Steps • Assemble a team • Educate team • Speeds and technology • Challenges providers are facing, economics of broadband • Research • Areas of need • Identify resources FinleyUSA.com
Study First Steps • Set Goals • Primary • Secondary • Provider Engagement • Evaluate existing providers and their plans • Community Engagement • Educate Community on process and get feedback FinleyUSA.com
Provider & Project Obstacles • Economics • Funding Options • Making the case • Who will take service? FinleyUSA.com
Technologies • Fiber • The “ultimate” solution • Can be prohibitively expensive, can be 7X cost of a wireless network • Aerial v. Buried • Time to deploy • Low maintenance cost FinleyUSA.com
Technologies • Wireless • Adequate for today’s needs • Technology is steadily improving • Cost effective • Quick deployment • Fight for Spectrum • Coverage Challenges • Tower Assets? • What does 5G mean for rural America FinleyUSA.com
Building the Model • Reality – We can’t know what project might come from a study. • Model = Flexibility • Factors Driving Accuracy • Data • Detail • Scope FinleyUSA.com
Study Results • Providers • Public • Identify Next Steps • Local Contributions • Maintain Momentum • Project Partners • Singles vs. Homeruns • Update Model as Required FinleyUSA.com
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